In the initial pilot scheme State Street will use select client portfolios to evaluate how the platform can be leveraged on a wider basis.

The scheme will also target upcoming derivatives regulations that are set to create an increase in margin calls and complexity.

“Global derivatives regulation will require market participants to completely transform their collateral management processes, if they are to keep pace with the expected increase in collateral calls,” said Mark Jennis, executive chairman at GlobalCollateral.

“It is great to see State Street and many of their peers acknowledging the benefits of an automated margin call process, in support of their own operational and risk management goals as well as to increase client and counterparty satisfaction.”